Airbus opens new assembly line for small jets in A380's shadow

investing.com:

By Tim Hepher

TOULOUSE, France (Reuters) — Europe's Airbus inaugurated a new assembly line for its A321neo jetliner in southwest France on Monday, granting a new lease of life to the deserted home of the defunct A380 superjumbo as it basks in record demand for smaller jets.

Speaking in the cavernous Jean-Luc Lagardere plant outside Toulouse, French Finance Minister Bruno Le Maire hailed the rebirth of an «industrial cathedral» as President Emmanuel Macron pursues policies of boosting manufacturing employment.

Airbus says the new line will create 700 jobs by 2026, about half the full-time total when the world's largest jet was built there, while supporting a fabric of thousands of suppliers.

The plant's makeover highlights a shift in the industry's attention from its largest and boldest creations like the double-decker A380 to stalwart single-aisle designs, which are enjoying a second wind due to their increased performance and efficiency.

The A321neo is the largest version of the A320 series of jets, which was relaunched with new engines in 2010 — just in time for a boom in demand stoked partly by low interest rates.

It is the eighth assembly line for the A320 family, with previously announced expansion plans in the United States and China due to bring the worldwide total to 10. The first plane is due to be completed in late 2023 for delivery next year.

Its opening comes as competition between Airbus and arch-rival Boeing (NYSE:BA) shifts towards production strategy, with both companies struggling to deliver on bulging order books.

The new line sits along one edge of the world's second-largest building by usable space, supported by automated stores where robotic pickers will select parts and tools for workers. Other